Saudi health ministry embarks on first PPP project

The Ministry of Health said that it will seek proposals from international suppliers for a project valued at more than SR250m. Above, a health ministry official visits a patient in a Saudi hospital. (AP Photo)
Updated 02 May 2019

Saudi health ministry embarks on first PPP project

  • The project involves the upgrade of radiology and medical imaging services at seven hospitals in the Riyadh area
  • It will employ almost 500 clinical, technical and nursing staff, and eventually serve around 1 million people

LONDON: Saudi Arabia’s Ministry of Health has embarked on its first public-private partnership (PPP) project, one of numerous such deals expected in the Kingdom.
The ministry said that it will seek proposals from international suppliers for a project valued at more than SR250 million ($66.7 million) over 10 years.
The project involves the upgrade of radiology and medical imaging services at seven hospitals in the Riyadh area.
It will employ almost 500 clinical, technical and nursing staff, and eventually serve around 1 million people, according to a ministry statement.
“The planned partnership will see increased investment in the selected hospitals’ radiology and nuclear medicine departments. This will include both purchase and installation of new hardware and software solutions,” it said.
“Ultimately, the PPP will improve service to beneficiaries by increasing accessibility to radiology services through use of state-of-the-art equipment and better trained radiology staff.”
It is the latest move in a huge push for PPP projects and privatizations in Saudi Arabia.
A total of 14 public-private partnership awards are expected to be made by the end of the decade in areas that include parking, recycling and renewables.
“The PPP market is fairly vibrant across the GCC, but the key focus is on Saudi Arabia where we expect to see more deals in renewables, education, transportation and health,” said Sohail Barkatali, a Dubai-based partner at Hogan Lovells, in a report issued in February.
Saudi Arabia’s privatization push is also set to shift gear this year with plans to raise as much as $10 billion through state assets sales by 2020, according to the Hogan Lovells report.
The Saudi government has previously stated that its aim is to raise some $200 billion by 2030 through privatizations, as well as another $100 billion through the sale of a 5 percent stake in state energy giant Saudi Aramco.


Egypt expects several share offerings by end of year

Updated 15 September 2019

Egypt expects several share offerings by end of year

  • One small company worth about 50 million Egyptian pounds was also expected to offer shares on the Nile Stock Exchange

CAIRO: Egypt expects two state companies and one private pharmaceuticals firm worth more than $61.3 million, or one billion Egyptian pounds, to make share offerings by the end of the year, an official at the Financial Regulatory Authority said on Sunday.
One small company worth about 50 million Egyptian pounds was also expected to offer shares on the Nile Stock Exchange, which specializes in small and medium sized enterprises, said Sayed Abdel Fadeel, head of the authority’s corporate finance department. He did not name the companies.
Egypt promised to sell minority stakes in several state companies in late 2018 but postponed the offerings following emerging market turbulence.